Exchange rate overshooting suggests that an unexpected increase in the domestic money supply by 10 percent will cause the short-run exchange rate value of the domestic currency to
A. appreciate by less than 10 percent.
B. depreciate by more than 10 percent.
C. depreciate by less than 10 percent.
D. appreciate by more than 10 percent.
Answer: B
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If exports increase, then the aggregate expenditure curve shifts ________ and equilibrium expenditure ________
A) upward; decreases B) upward; increases C) downward; increases D) downward; decreases E) upward; does not change
Labor unions cause unemployment because the union contract wage is set
A) below the market wage, causing a shortage of labor. B) above the market wage, causing a surplus of labor. C) above the market wage, causing a shortage of labor. D) below the market wage, causing a surplus of labor.
Which of the following is not among the United States’ economic goals?
a. full employment b. stable prices c. healthy economic growth d. equal distribution of income
The gambler's fallacy suggests that what happened in the past will influence the present. Suffering from the gambler's fallacy is most likely TRUE in which of the following situations?
A) flipping cards from a single deck B) tossing a fair coin C) the quality of play of a baseball team D) horse racing